Sunday, 9 January 2011

Labour's VAT figures

According to an article on the BBC, Labour says the increase in VAT will cost the average family £7.50 a week.

So the average family spends x/1.175*1.2 - x = £7.50 => x = £7.50/(1.2/1.175 - 1) = £352.50 per week on VATable goods? That's £1410pcm. Is this plausible?

AFAIK, the list of exempt or reduced rate goods hasn't changed. At least I recall no mention of this happening and haven't found anything by Googling.

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